Gateway Energy has announced that its wholly owned subsidiary Gateway Offshore Pipeline has entered into two new gas transportation agreements with producers to transport all of their natural gas produced from the applicable leases through Gateway's Bolivar and recently acquired Gulfshore pipeline systems for the life of each lease.
Madisonville Gas Processing (MGP) has informed Gateway that it has temporarily suspended the operations of the expanded portion of the plant for modifications to more effectively deal with the presence of diamondoids in the gas stream produced from the Rodessa Formation.
MGP said that it has completed detailed analysis of the composition of the diamondoids and is in the process of evaluating modifications to the operating system. The implementation of these system modifications is expected to be completed by MGP as soon as possible. The new plant is expected to resume operations later in the first quarter of 2008. In the meantime, the company said that the old plant continues to treat approximately 15 million cubic feet per day of inlet gas.
Robert Panico, president and CEO of Gateway, said: We continue to see exploration and development interest near our offshore pipeline systems. During the fourth quarter of 2007, two new wells were tied into our Gulfshore system pursuant to the new transportation agreement and an existing agreement. This resulted in revenue for the Gulfshore system increasing over 20% from the effective date of its acquisition in August 2007.